Technology stocks remained among the strongest performers during the first six months of 2026, but the biggest gains came from companies outside the United States.
Artificial intelligence remained the biggest driver of technology investing during the first half of the year, although market leadership broadened beyond the group of U.S. mega-cap companies that fueled much of Wall Street's rally over the past two years. Investors instead poured money into semiconductor manufacturers and hardware suppliers across Asia and Europe.
The strongest gains came from MSCI's Emerging Markets Information Technology Index, which surged more than 90% during the first half of the year. The MSCI Europe Information Technology Index climbed 44.8%, while the MSCI USA Information Technology Index gained 19.4%, CNBC reported.
The trend extended across regional benchmarks. Europe's STOXX 600 Technology Index rose 23.4% between January and June, ahead of the S&P 500 Information Technology Index, which advanced 19.4%.
Wall Street's major indexes finished the first half with solid gains but lagged several international markets. The Nasdaq 100 gained 19.9%, while the Nasdaq Composite rose 12.79%, the S&P 500 added 9.55% and the Dow Jones Industrial Average climbed 8.85%.
Outside the United States, several stock markets delivered much stronger returns. The MSCI Emerging Markets Index gained 24%, South Korea's Kospi jumped 101.1%, and Japan's Nikkei 225 advanced about 39% during the first half of the year.
European markets also finished higher, although performance varied across the region. Spain's IBEX 35 gained 12.5%, Italy's FTSE MIB rose 14.7%, Portugal's PSI added 10.5%, and the broader STOXX 600 index climbed more than 8%.
The shift was particularly noticeable within the semiconductor industry. Taiwan Semiconductor Manufacturing Co. (TSMC) gained 55.5% during the first half of the year, while South Korea's SK Hynix climbed about 300%. Dutch chip equipment manufacturers ASML and ASM International advanced 86.8% and 93.3%, respectively, and BE Semiconductor more than doubled in value, CNBC reported.
Nvidia continued to post gains, rising 7.3% during the first half, but several other major U.S. technology companies struggled through periods of volatility as investors rotated toward semiconductor manufacturers and AI infrastructure companies.
The broader shift reflected growing investor confidence in companies supplying the hardware needed for artificial intelligence, rather than concentrating solely on software and cloud-computing leaders. Semiconductor manufacturers benefited from continued demand for advanced processors, memory chips and chipmaking equipment, Reuters reported.
The first-half rally also highlighted the growing importance of international markets. Investors increasingly looked beyond Silicon Valley as governments in Asia and Europe expanded support for domestic semiconductor manufacturing following supply chain disruptions and rising competition over AI technologies, Barron's reported.
Although U.S. technology companies remained among the world's largest by market value, international peers captured many of the strongest stock gains during the first six months of 2026. The rotation reflected broader participation in the AI trade, with investors rewarding companies involved in manufacturing the chips and equipment powering next-generation artificial intelligence systems, Reuters noted.
